Low Price-to-Earnings Ratio
Strong Price-to-Sales Ratio
Decent Return on Equity
Positive Free Cash Flow Yield
Adequate Current Ratio
Interest Coverage Ratio
🏆 Strong Market Position
💡 Innovative Growth Strategies
🔧 Improved Operational Efficiency
🚀 EV and Multi-Energy Strategy
💰 Strong Cash Position
High EV/EBITDA Ratio
Low Gross Profit Margin
Modest Net Profit Margin
High Debt-to-Equity Ratio
Low Cash Ratio
⚠️ Cost Challenges Ahead
📉 Pricing Pressure and Market Volatility
Ford Motor Company exhibits strong business quality with its established market leadership and innovative approaches to revenue generation. However, challenges remain in cost management and competitive pressures. Future prospects are bolstered by a solid cash position and strategic EV initiatives, although pricing pressures may pose risks to profitability.
Analysis Date: February 5, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$56.91
Current Market Price: $9.41
IV/P Ratio: 6.05x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
83.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for F
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (6.48)
P/B ratio ≤ 1.5 (0.85)
Current ratio ≥ 2.0 (1.16x)
Long-term debt < Net current assets (5.98x)
Margin of safety (83.0%)
F does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A return on equity (ROE) of 13.39% reflects a solid ability to generate profit from shareholders' equity, indicating effective management.
A free cash flow yield of 18.35% indicates that the company generates robust cash flow relative to its market capitalization, allowing for growth and dividend payments.
A gross profit margin of 8.43% is relatively low, suggesting that the company may face challenges in controlling costs or pricing its products effectively.
The net profit margin of 3.18% indicates limited profitability, which may be a concern for long-term sustainability.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
13.39%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
0.64%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
8.43%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
3.18%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A current ratio of 1.16 suggests that the company can cover its short-term liabilities with its short-term assets, indicating reasonable liquidity.
An interest coverage ratio of 4.51 indicates that the company generates enough earnings to comfortably cover its interest expenses.
A debt-to-equity ratio of 3.59 indicates significant leverage, which might increase financial risk, particularly in unfavorable market conditions.
A cash ratio of 0.21 suggests limited liquidity in terms of cash available to meet short-term obligations, which could be a red flag.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
3.59x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.16x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Ford is established as a leader in the pickup truck segment, with the F-Series being America's best-selling pickup truck and vehicle overall. The success of the Ranger and the Transit family reinforces their strength in commercial segments.
Ford is shifting towards building recurring revenue streams through software and physical services, as evidenced by a 27% increase in Pro software subscriptions and a doubling of telematics software sales.
Ford has made significant strides in cost reduction, achieving around $500 million in net cost savings in the second half of the previous year, positioning them to improve their competitive cost structure.
Despite progress, Ford acknowledges a continued competitive cost gap and ongoing operational issues that need to be addressed to improve margins further.
Ford is actively developing its EV lineup and hybrid solutions, focusing on affordability and customer preferences, which positions them well for future growth in the evolving automotive landscape.
Ford maintains a robust liquidity position with over $28 billion in cash, which allows for strategic investments in growth and innovation.
The company anticipates lower industry pricing and potential headwinds from tariffs and market competition, which could impact margins and overall profitability.